Site visit – Bingo Industries
On June 26 we spent the day with Bingo Industries (ASX: BIN), one of our biggest holdings.
Why do we like Bingo?
It began life as a listed company with two (collections and post collection sorting) of the three key components of the waste logistics chain.
The acquisition of Dial-a-dump (DADI) in early 2019 added Australia’s leading recycling and landfill capability and completed the vertical integration of the business.
This acquisition, combined with the lower share price driven by the markets concerns about the impact of lower housing development waste, has provided an ideal buying opportunity, in our opinion.
What did we learn on June 26?
- That DADI have not only added significant assets to Bingo but also very complementary management skills.
- The new Bingo is achieving class leading levels of recycling which in some cases is over 75%.
- The company has by far the largest amount of landfill capacity in Sydney.
- The company has put considerable effort onto supporting the Indigenous, Minority and semi-skilled members of its workforce.
- The company has a sound strategic plan to achieve success in the eastern Seaboard of Australia.
Author: Stephen Wood, Principal and Portfolio Manager
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